What is the difference between a Layer 1 and Layer 2 Blockchain? - Stardust (2024)

FAQs

What is the difference between Layer 1 and layer 2 blockchain? ›

Layer 1 refers to a base blockchain protocol, (e.g., Bitcoin or Ethereum) while layer 2 refers to a third-party protocol built to have integrated functionality with that base blockchain. There, that's it. If you wanted a high-level overview, that's pretty much all you needed to know.

Layer 1 provides the physical infrastructure and encoding schemes, ensuring that data can traverse the network medium accurately. Layer 2 builds upon this foundation, framing data and enabling devices to communicate efficiently.

Layer-1 scaling solutions involve making fundamental changes to the underlying blockchain protocol to directly improve scalability, while Layer-2 scaling solutions operate above the base protocol and focus on improving scalability through off-chain transaction processing and secondary protocols.

Layer-2 refers to a network or technology that operates on top of an underlying blockchain protocol to improve its scalability and efficiency.

A Layer-1 Blockchain refers to the foundational level of blockchain architecture, operating as the primary and autonomous chain on which transactions are directly executed and confirmed, as well as providing the essential infrastructure for decentralized applications and smart contracts.

Layer 1 scaling involves foundational blockchain enhancements, while Layer 2 builds atop L1 for improved transaction speed and efficiency. BNB Smart Chain and opBNB exemplify this evolution in the BNB ecosystem. If you are new to crypto, terms like layer 1 and layer 2 might throw you off.

LAYER 1 - The physical layer in the wired world consist of connectors, cables, fiber, and gbics. This is also the layer where data gets transmitted / received into bits, 0's and 1's using complex coding and modulations. LAYER 2 - The data layer is where upper layer information (Layers 3-7) is encapsulated into a frame.

Layer 2 switches by default do not have built-in security features, making them vulnerable to security threats such as ARP spoofing attacks. Layer 3 switches have built-in security features, such as access control lists, that can help protect your network from security threats.

Devices used on a Layer 2 Ethernet network include network interface cards, hubs, bridges and switches.

Layer 1 solutions have several advantages over Layer 2 solutions because they do not need a separate chain or related improvements that may interfere with the underlying construction. Instead, these solutions alter the protocol's rules to increase transaction capacity and speed and serve more users and data.

What is the difference between L1 and L2 EVM? ›

In the Ethereum ecosystem, L1 (Layer 1) refers to the main blockchain layer, where all transactions and smart contract executions occur. L2 (Layer 2), on the other hand, represents various scaling solutions built on top of the Ethereum L1 blockchain to improve its scalability and reduce transaction costs.

Layer 2 - A Scalability Solution

The Ethereum community has turned to Layer 2 solutions to address these challenges. These are networks (or technologies) built on top of the Ethereum blockchain, designed to increase its capacity without compromising security.

Examples of Layer 1 blockchains are the market's biggest cryptocurrencies, Bitcoin and Ethereum. Layer 2 solutions include, for example, Bitcoin's Lightning Network and the scalability solution Polygon, which add functionality and scalability on top of Layer 1 blockchains.

The data link layer, or layer 2, is the second layer of the seven-layer OSI model of computer networking. This layer is the protocol layer that transfers data between nodes on a network segment across the physical layer.

Solana is a Layer 1 blockchain and component of the Smart Contract Platforms Crypto Sector (Exhibit 1). Compared to Ethereum—the largest smart contract platform by market capitalization—Solana provides faster and cheaper transactions on a single-layer network, without relying on additional scaling layers.

Polygon (MATIC): A Top Layer-2 Ethereum Scaling Solution.

Layer 2 | Chainlink | Every Chainlink integration and partnership.

Traditional blockchains like Bitcoin and Ethereum are often called Layer-1, where transactions are processed directly on the blockchain. However, Layer-0 restructures this approach by underpinning the entire blockchain ecosystem.